Sovereign Gold Bond - Can we pledge?

Hi,

Sovereign Gold Bond, can we pledge for Option selling?

If yes how much is the hair cut?

Also is it considered as cash like liquid bees?

You can’t pledge SGB’s as of now to avail the collateral margin for trading. It will be made available in future. To see the list of scrips on which pledging is allowed and the haircut % on them - click here .

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@ramesh1985 Hi Ramesh, this seems active now, pledged my SGBs

@TheGouda Hi Gauda, can you advise if SGB pledged is considered as Cash Equivalent (similar to Liquidbees)?

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SGB’s are considered as Cash Equivalent, you can check the list here.

When you pledge, you get a collateral margin. Since it is a margin and not cash that you are getting, you can use it only for products where margin is blocked. So essentially to trade futures (both buying/selling ) and trading options (only shorting/writing).

Could you please let me know when will be SEP 2020 and OCT 2020 series SGBs are allowed for pledging ?

As Zerodha is allowing SGB for pledging, I purchased SGB in Sep and Oct in large qty, but Zerodha not allowing for pledging the above series SGBs.

These are not yet available, when Clearing Corporation adds these bonds to their approved list both these bonds should be available for pledging.

Thanks for reply, is there any idea on criteria on which they add them in the pledge list ?

Hi, i have bought the series VIII SGB (SGBNOV28), however i am unable to pledge this for collateral margin. I have raised a ticket for this and they say that NSE has not included this SGB in the haircut list. I was of the understanding that SGB’s in general are eligible for collateral margin, but why this is an exception. can you please help me understand.

only upto oct is availabkle to pledge, wait for 2 month

Ok. Guess this is a delay from NSE .

The SGBNOV28 will be available for pledging when it is approved by Clearing Corporation.

Got it. Thank You.

@ShubhS9
how muxh time it takes to sgb to be available for pledge ??

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If and when a newly issued SGB is added to the list of approved securities for pledging by Clearing Corporation, you’ll be able to pledge.

Hi… Can we get 2.5% interest after we pledged it?

Yes, you’ll continue to get interest even after pledging.

I have a seen in zerodha margin calculator that for selling nifty 16200 ce is 96000.
Let’s assume I have 20gm of SGB’s which will fetch a 80000 as margin after I pledge.
Since SGB’s are considered as cash equivalent is it enough to have rest 16000 as cash.
Will there be any interest rate charged for the margin 80000 which I got from pleading SGB

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No, there won’t be any interest.

Hi @ShubhS9
Not showing Pledge option on the new SGB series - SGBs SGBMAY29I-GB
Can you please check and activate Pledging ASAP?

Thanks.
Nakul

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